Real estate strategy

black4vcobra

Well-Known Member
Established Member
Premium Member
Party Liquor Posse
Joined
Feb 22, 2009
Messages
4,460
Location
Cottage Grove, WI
VegasMike's thread inspired me to see if anyone would have any knowledge or constructive input.

Looking for a bit of strategy. We are closing on our next house next week but the prior owners had requested a rent back until September as they are building. We anticipate listing our current home in late July for a mid September closing.

Would it be good to list soon and request a mid September closing? Or list soon and request a rent back until mid September?

My agent seems to think the original plan is the best way to go and it certainly seems like it to me as prices just keep going up month after month, however, if rates get well into the 6s it has to cool home prices.

The good news is that we will be listing at 65-70% more than we paid for the house 7 years ago and it will sell instantly as there is ridiculously low inventory of homes around here and the area is generally accepted to be recession proof (Madison, WI).

We have great credit, pretty good income and no debt besides the mortgage so we were approved to hold both properties but getting top dollar for our current home is the goal as we stepped up quite a bit in home and location and are going from a 3.0% interest rate to 4.875%.

If it matters, our current home is 1950 sq ft finished, 3 bed, 2.5 bath 2001 house. Can most accurately be called a smaller family home for the area.
 

13COBRA

Resident Ford Dealer
Established Member
Premium Member
Single Barrel Sirs
Joined
Jun 4, 2012
Messages
22,319
Location
Missouri
I would sell now, then rent back from the new owners for the same $$$ amount that your new home people are paying you. That way it's a wash and you can take advantage of the market. Prices will come down.
 

ToddW702

Well-Known Member
Established Member
Joined
Jan 21, 2014
Messages
654
Location
TX
I agree to list right away and do a rent back. Several interest rate hikes in the next few months may make things get funny.


Sent from my iPhone using svtperformance.com
 

black4vcobra

Well-Known Member
Established Member
Premium Member
Party Liquor Posse
Joined
Feb 22, 2009
Messages
4,460
Location
Cottage Grove, WI
I would sell now, then rent back from the new owners for the same $$$ amount that your new home people are paying you. That way it's a wash and you can take advantage of the market. Prices will come down.

Thanks for the input, it certainly would be the way to go if the area wasn't so ridiculous, still definitely worth considering though and will be brought up with our agent.

To clarify a bit, the rent back on our current home would be significantly less than what we are getting paid for rent by the current owners of our next home as that is a bit over 4k sq ft and in Cottage Grove.
 

Adower

Well-Known Member
Established Member
Joined
Sep 3, 2005
Messages
2,800
Location
SAC
I think you should list sooner than later. Rates are on the rise and I believe the fed just stated their going to do a 50 basis point hike pretty soon.
 

13COBRA

Resident Ford Dealer
Established Member
Premium Member
Single Barrel Sirs
Joined
Jun 4, 2012
Messages
22,319
Location
Missouri
Thanks for the input, it certainly would be the way to go if the area wasn't so ridiculous, still definitely worth considering though and will be brought up with our agent.

To clarify a bit, the rent back on our current home would be significantly less than what we are getting paid for rent by the current owners of our next home as that is a bit over 4k sq ft and in Cottage Grove.

What does that matter? You can set the terms.
 

98 svt

Well-Known Member
Established Member
Premium Member
Joined
May 16, 2005
Messages
23,964
Location
Massachoooosetts
Keep in mind that the current owners of your new house may not be ready when September comes around too. Their new house may not be done yet.
 

black4vcobra

Well-Known Member
Established Member
Premium Member
Party Liquor Posse
Joined
Feb 22, 2009
Messages
4,460
Location
Cottage Grove, WI
What does that matter? You can set the terms.

Oh I guess I was misunderstanding what you were suggesting then. I thought you were implying we should pay the same amount of rent for our current home (if we sold and rented back) as we are receiving in rent from the current owners of our new home.

You are right though, it would be best to determine the fair rental value of the house and suggest that in the sale ad.
 

black4vcobra

Well-Known Member
Established Member
Premium Member
Party Liquor Posse
Joined
Feb 22, 2009
Messages
4,460
Location
Cottage Grove, WI
Keep in mind that the current owners of your new house may not be ready when September comes around too. Their new house may not be done yet.

Good point. The purchase contract has a set date they are renting until but of course that can always change with the supply chain snaggles.

I think you should list sooner than later. Rates are on the rise and I believe the fed just stated their going to do a 50 basis point hike pretty soon.

Yes, the idea to wait until July to list was before the fed signaled aggressive rate hikes. Things are definitely different now.
 

SHOdown220

Well-Known Member
Established Member
Joined
Feb 6, 2006
Messages
1,978
Location
North Carolina
Keep in mind that the current owners of your new house may not be ready when September comes around too. Their new house may not be done yet.

Yeah we are several months away from september who knows how many hang ups will happen between now and then. Unless it's in the contract they have to be out by a certain date. I know our house was still being built when we purchased and they had a requested 45 days to close so there was time to finish. It was still pushed out another 3.5 weeks past that date. Hell when we got our keys I walked into our new house and found boxes of materials and tools laying around our kitchen. I was pissed. They came out and finished the next day after I called our realtor asking WTF this is supposed to be completely done, we have signed and have our keys.
 

black4vcobra

Well-Known Member
Established Member
Premium Member
Party Liquor Posse
Joined
Feb 22, 2009
Messages
4,460
Location
Cottage Grove, WI
Floated the idea of listing soon and renting back to our realtor and he agreed it's now a better option than even a month ago so it looks like that's what we'll do.

Thanks for the input all.
 

Users who are viewing this thread



Top